Home Buyers Guide: Ensuring Success For The First Time Buyers
Finally being able to afford the home that you have always been dreaming of could practically be exciting and sometimes also daunting. Despite the fact that buying a home is a very good way to invest, it is still important that you must think it through and make sure that you are ready for this stage in life. So whether you are still undecided or just want some informative advice, we have laid out for you several tips that will help you make the right decision in buying a home.
Ensure that you have save enough
Despite the low rate of down payments which could go as low as 5%, paying a bigger amount as a down payment will enable you to have a better mortgage rate for your home. It would also be great if you are going to allocate at least a small amount of cash just in case the new home needs repairs or renovations. This is very important to secure as it will allow you to immediately repair any kind of damage or renovate parts of the home that you do not like.
Get the help that you need
One of the shortest route to finding help in buying a home is to look for local government schemes that aims to help people buy their own home. If you are living in a community that does not have these kind of government programs, then the next big step to take would be to find a reliable lender to have your mortgage pre-approved prior to contacting an estate agent. Make sure that you are going to calculate all of the expenses involved such as the property taxes, mortgage, new housing expenses, homeowner’s insurance and homeowners association fees before going ahead with the purchase. With the total in hand, follow the advice of the Federal Housing Administration (FHA) and make sure that the total does not exceed 46% of the monthly gross income that you have.
Make Your Offer
Anyone who is looking to buy a house is expected to start making offers immediately. However, always bear in mind that you do not have to make an offer you could not afford since at the end of the day, you will be the one that is going to suffer if you cant meet your ends. Finding a reliable real estate agent that will help you scrutinize the amount of money needed for the house would be of great help to you so that you would be able to come up with the best offer. Once you have come up with an agreement with the seller, you are then required to have a good faith deposit for the house and then the transaction will proceed to escrow which usually lasts for about thirty days. Once that has been processed, it is now time for you to take the house off the market list along with a contract that you will buy it if upon inspection you will not find problems that are too serious to handle.